Courage Marine Property Switch: Sign of Property Bubble?
Courage Marine, a dry bulk vessel charterer is switching into property business with its latest investment in a joint venture to build a condo in Potong Pasir. This reveals two signs:First, dry bulk shipping business is in doldrums due to China slowdown. Second, Singapore property business is still considered to be so lucrative that companies originally not involved in property are getting involved like Transview Holdings(originally in golf equipment business) which is a joint venture partner of Courage Marine.
However, as all good things must come to an end. With the increase in supply of land for building private property and hdb flats and the clampdown on growth in immigrants to Singapore, demand will sooner or later lag behind supply. As FED starts to raise rates in 2014, demand will be reduced further, thus the property bubble in Singapore will end too.
Entry filed under: Watch your step.